How can I save money with my business insurance?
1 – Shop around – check with direct writers AND independent agents. Direct writers such as American Family, State Farm, Allstate, Farmers can typically only write in their respective family of insurance companies. Independent insurance agents represent multiple insurance carriers (examples: The Hartford, Chubb Insurance, C N A Insurance, Zurich, Travelers, EMC Insurance, etc). Make sure that the agents are licensed for products that they are selling by contacting your state insurance division. Ask for referrals from friends, other businesses and networking groups such as the www.valleyreferralnetwork.com . The insurance marketplace is very dynamic and changes rapidly. One insurance carrier can come in with a low premium one year and be the highest the next.
2 – Understand your insurance policies – no one wants to do this but it must be done. Review your current insurance policies. Understand what the insurance policy is designed to cover. (THERE IS NO INSURANCE POLICY THAT COVERS EVERYTHING) Review what your limits are. Review exclusions, terms, endorsements, etc. Find out how the premium is derived. Is it payroll? Is it gross receipts? Number of jobs? Number of employees? It could be a combination of all of the above or something else. Your policy should clearly state how the premium is calculated. Understanding this and making adjustments to your policy in the middle of term can adjust your current payment schedule and can help alleviate audit issues upon policy expiration.
3 – Communicate with your insurance agent – insurance agents do not have a crystal ball or magic wand that tells them what your concerns or issues are. Discuss, in detail, what you wish to do with the insurance coverage. Don’t be afraid to ask questions. Insurance is very complicated, can be intimidating and (quite frankly) boring. That is what the agent is there for. Many issues can be resolved before they turn into problems by communicating with your insurance agent.
Filed under: Business Insurance Advice Tagged: | Business Insurance Advice
